Square Enix is known for its Final Fantasy games, as millions worldwide recognize the series. Final Fantasy 16 marks the latest AAA offering from this publisher, but the game’s success may have been limited due to PS5 exclusivity.
Following this release, the company’s market value plummeted by $2 billion. While Square Enix stated this premium release sold as expected, the latest financial report shows that the publisher’s profits declined by 42% year-on-year.
Why it matters: Square Enix seems to have cornered itself after focusing solely on Final Fantasy and partnering with PlayStation for each new release.
Square Enix’s latest financial earnings report outlines the results from the last nine months of 2023. During this period, game sales only rose by 1 percent year-on-year despite no shortage of releases.
As reported by Gameindustrybiz, Square Enix’s HD games segment saw an uplift of around 15% in net sales revenue overall thanks to titles like Final Fantasy 16 and Pixel Remaster.
However, this was not enough to combat the company’s declining value. Revenues from the MMO and mobile business also declined. Square Enix has been struggling for a while, so its latest strategy is to cut down the lineup to focus on consistent quality.
In 2024, Square Enix has at least three major releases already lined up. Fomstars is positioned as a major live service release from the publisher, while Final Fantasy 7 Rebirth is already creating a lot of buzz from audiences.
Following this financial report, Square Enix reportedly plans to restructure its development of AAA titles. An announcement with more details is expected to follow in the Spring of 2024.
This could be the publisher’s answer to its weak performance in a booming gaming market where others like Capcom continue to produce exceptional results.
Obaid is pursuing a Law degree, while working as a content writer. He has worked as a gaming writer for over a year because of his passion for the medium and reporting the latest updates in the industry. Having played hundreds of games, Obaid finds himself coming back to Elden Ring and Red Dead Redemption 2, with these games being among his favorites. He has also been mentioned on highly regarded websites, such as Wccftech, Metro UK, PS Lifestyle, GamePressure, VGC, and Gamespot.